Sterling Ratio – An Enigma

June 2, 2012

The Sterling ratio is the most perplexing of performance ratios, there appears to multiple versions in common usage and additionally it is often confused with the Calmar ratio.

‘This confusion is caused because the original definition is hard to verify,’ says Carl Bacon, Chairman of StatPro Group. ‘I can find no supporting documentation, only meagre hints and clues that suggest the Sterling ratio was first suggested by Deane Sterling Jones, a company no longer in existence.’